Turkey: Annuity regulation comes into effect
Source: Middle East Insurance Review | Nov 2015
A new regulation on annuity insurance took effect in Turkey on 1 October, whereby different types of annuity products will be offered to customers according to their ages.
For customers aged at least 56, immediate annuities will be available and will offer a stream of lifetime income. For customers younger than 56, annuity providers can offer flexible products such as immediate or deferred annuities with a maximum deferment period of five years. These products can be in the Turkish lira or foreign currency.
According to a survey by Aviva, around 55% of Turkish people polled believe that they will face economic problems after they retire, so most plan to keep working.
The proportion of elderly people in Turkey, that is those aged at least 65, stood at 8% of the overall population in 2014, and is expected to surpass 10% by 2023, according to data released by the Turkish Statistics Institute.